How GST to be connected with PAN card?

Significance of Pan Card in GST Registration

The Income Tax Department of India makes it necessary for people and business entities to outfit the PAN card details for every one of those individuals who need to pay central excise duty and service tax. It is one of the docs that is required while paying goods and services tax or GST.

The GST arrangement of tax collection likewise replaces the various taxes that the central and the state governments force. With regards to the new systems, a unified approach is the thing that the government needs to build up. The various taxes, for example, food, VAT, luxury, corruption, buy, advertisement tax go under the top of GST or the goods and services tax.

Starting GST utilizing PAN

The PAN card is required for the GST enrollment process.

  • Most importantly, a temporary registration number which is known as the GSTIN or the Goods and Services Tax Identification Number is just to be given to the individuals who hold the PAN card and the details will be actually same to what is referred in that.
  • In the new tax structure, the candidates will get an unique registration against the PAN alongside a temporary ID of the state where the business exists.
  • As indicated by the new ruling of the government that the organizations with different business portions can enroll a few times with the system of GST with one PAN in particular. But, every single one of these sections will be considered as a different business structure the extent that the tax calculations are concerned.

Category of individuals

The accompanying category of individuals must give a copy of the PAN card during GST enrollment. Hence, they should comprehend the mechanism of NSDL PAN apply and get the card as sooner as feasible for the procedure of GST enrollment.

  • Individual or sole owner
  • HUF
  • Indian and foreign organizations whether public or private.
  • Association firm including the Limited Liability Company.

Different Types of GST Enrollment

The business elements need to give a few docs and need to submit them on the portal of GST for the enrollment. Take a fast look at the sorts of GST enrollment and the reason. regardless the type of enrollment, it is important to outfit the PAN details to achieve the procedure.

  • With regards to common enrollment of the taxpayers and for the supply of those goods and services that are taxable, the PAN card of the organization and the approved signatory is required. Moreover, it is important to give the PAN details of tall the directors of the organization.
  • For TDS enrollment that related with the tax that is deducted at source, the PAN number of the individual who is enlisted is required.
  • With regards to TCS enrollment, the PAN number of the candidate being enlisted is additionally to be given as one of the documents.

The Goods and Services Tax Identification Number or the GSTIN that is a major part of the new number that is explicit to each state, which relies upon PAN. Consequently, the fifteen-digit registration number involves the state code, PAN, the check digit, and the entity code. All the GST enrollments are executed dependent on PAN.

Searching GSTIN by PAN

The Goods and Service Tax Identification is one of the key parts of the GST system. In the event that you are searching for the number, the PAN card comes to help as you have to look by the details referenced in the card. Check the accompanying details.

  • The initial step is to visit the portal of GST.
  • When you are in the site, you need to click on the tab “Search Taxpayer”
  • You need to choose the option”Search by PAN”
  • Mention the PAN number in the field and the captcha code that is given underneath.
  • At last, you need to clock on “Search” and the site will show the details you have referred against the PAN details you give.

It is very evident that the PAN number is the premise or the system of GST enrollment method. Regardless of whether it is to launch the procedure of enrollment or to search for the GSTIN or the unique code that plans to improve the tax structure of your business, utilizing the PAN card is necessary. In case you need to finish the enrollment now, you need to apply for the PAN card now and complete the process.

Enquire with Certicom Consulting in case of any queries.

7 Steps to follow for GST E-Invoice Generation

The usage of E-invoicing is good to go to be moved down for B2B transactions in India from the month of January 2020. According to the suggestions of the GST board, the proposed E-invoicing system has 2 angles for example

  • Adoption of a standard for the invoice, which will empower standardization and quick data trade
  • Enlisting the standard invoice with Government, through Invoice Registration Portal (IRP), which will guarantee the credibility of invoices.

The E-invoicing system at first will be accessible on deliberate reason for taxpayers satisfying the criteria (having a specific turnover or specific invoice value), in this way presenting the same for every one of the taxpayers.

In a brisk review, E-invoicing is a component being acquainted under GST with control tax avoidance and enable an invoicing standard in India. With the usage of E-invoicing, the GST system will be able to approve all the B2B transactions electronically and pre-populate the same in taxpayer’s GST return forms, according to the relating details.

Advantages Of GST E-Invoicing System

The advantages of presenting E-invoicing under GST include:

  • Auto-Populated GST Anx 1, GST Anx 2 and GSTR 1 (for B2B invoices).
  • Auto-populated Part A for Eway Bill generation (taxpayer should give vehicle details in Part B to finish EWB generation)
  • Auto-sharing of transferred invoices (on IRP) with the buyers for compromise.
  • The system will auto-coordinate input credit liability with output tax.

Features Of Proposed E-Invoicing System In India

Clearing the haze about a significant misguided judgment encompassing the E-invoice generation, it isn’t required for a taxpayer to produce E-invoice through the government’s tax portal. In fact, the taxpayer can keep utilizing any accounting software of his inclination, with the main need being, the software’s capacity to create the invoice in the given e-invoicing format.

Moreover, the provider/seller is required to present these E-invoices on the GSTN portal for the approval purpose, following which, it tends to be utilized for return filing and EWB generation. Unraveling the whole procedure of E-invoice generation, directly from the invoice creation to having the same with purchasers (for compromise), here is a step by step guide  for producing a Valid E-invoice:

  • Invoice is made utilizing an accounting or billing software according to the recommended format for E-invoicing.
  • Provider can create an extraordinary Invoice Reference Number (IRN) utilizing a standard hash-generation algorithm. Generation of IRN by provider is optional. Without IRN, the IRP system of government will create the same.
  • JSON file for each B2B invoice (created through the accounting software or any outsider tool/device), alongside the IRN, whenever produced is uploaded on the Invoice Registration Portal (IRP)
  • The IRP will approve the created hash/IRN connected with JSON (whenever uploaded by the supplier)or produce an IRN and verify the file against the central registry of GST for any duplication. The IRN will be the one of a kind character of the E-invoice for the whole financial year.
  • Upon successful confirmation, the invoice will be updated with IRP’s computerized signature on the invoice information and a QR code will be added to the JSON file.
  • The transferred information will be shared to the E-way bill and GST syatem, which will be utilized for auto-population of GST Annexures and
  • The portal will send the digitallly signed JSON alongside IRN and QR code back to the seller. The invoice will likewise be sent to the purchaser on their registered email id.

While the E-invoicing system is being acquainted with check tax avoidance and simplified GST compliance for a taxpayer, it ought to be noticed that choosing the correct invoicing arrangement can play a major role in your consistence venture. IRIS Onyx, an e-invoicing arrangement from IRIS GST, is a one-stop platform for you to view, share and work together with your clients and providers the same, while dealing with the whole correspondence with the GST systems in a problem free way.

Enquire with Certicom Consulting for more details.

Ways to Get Advance Authorisation on Export Inputs

Advance Authorisation Scheme (AA) is a tax and duties neutralization scheme under foreign trade policy (FTP).  The main goal for the introduction of AA is to limit the working capital requirements for exporters.

Under this scheme, any input goods that increases value to an export product during the manufacturing process will be left from any duty-charges. Along with the components of the export product, fuels, oil and catalyst taken during the integration/ production procedures can also be imported tax-free.

The imported goods are removed from below duties:

  • Basic Customs Duty
  • Additional Customs Duty
  • Education Cess
  • Anti-dumping duty
  • Safeguard Duty & Transition Product-Specific Safeguard Duty
  • Integrated tax
  • Compensation Cess
  • as and where applicable.

Applicability Of Advance Authorisation

The advantages of the AA scheme can be availed by any manufacturing exporter or any other exporter tied with a supporting manufacturer.  The scheme is applied to

  • Physical exports,
  • Exports to SEZ,
  • Intermediate supply
  • Supplies made to specified categories of deemed exports

Additionally, AAS is issued to sub-contractors to any project (in case of deemed exports), United Nations Organizations (UNO), aid programs of the United Nations or other multilateral agencies; the likes of which are paid for in free foreign exchange.

Getting Advance Authorization

An exporter can get the benefits AA on the below grounds:

  1. Standard Input-Output Norms (SION):
    SION is a set of standard norm that defines how much input is necessary to manufacture the given export product. The DGFT issues these norms, on the recommendations of Norms committee. SION is available for a wide range of products.
  2. Self-declaration:
    Without SION for a particular product, the exporter can apply to the regional authority. The regional authority, upon detailed review, can issue AA to the exporter.
    The exporter can also make an application to the norms committee, before the fixation of norms. By receiving the necessary documents, the Norm committee can change the norms or issue an Ad-hoc norm. The ad-hoc norms are valid for a single authorisation and repeat authorisation for the same cannot be issued.
  3. Self-Ratification Scheme:
    Exporters registered under Authorised Economic Operator(AEO) can get AA under this scheme. The exporter can opt-in for AA in case SION or valid ad-hoc norm is unavailable. The exporter can also opt-in for the scheme if he wants to import additional manufacturing inputs, though SION is notified for the given goods. Under the scheme, ratification by the norms committee is not necessary. The exporter can directly apply to the regional authority, who may issue Advance Authorization upon completion of the valid conditions.

P.S: AA can be issued for annual requirements on SION notified goods. To get Annual Advance Authorisation, the exporter needs to have a performance record of the last 2 financial years.

Calculation Of Value Addition (VA)

As per AA, inputs exported should add a minimal value of 15%. In order to calculate VA

VA = (A-B) x 100/B

Where,
A = FOB value of export realised / FOR value of supply received.
B = CIF value of inputs covered by the authorisation, plus any other imported materials used on which benefit of DBK (Duty Drawback) is claimed.

Exceptions:
The given value addition may change for the below

  • Physical exports for which payments are not received in free convertible currency
  • Minimum VA for tea is 50%
  • Specific spices required for value-added activities such as crushing, grinding, sterilization, manufacture of oil & oleoresins, but not for simple cleaning, grading, re-packing, etc.
  • Gems and jewellery.

Major points to note

  • Advance Authorisation is issued with a validity of 12 months.
  • The export obligation has to be fulfilled within a time span of 18 months or as notified by the DGFT.
  • The authorisation is non-transferable and any import under the scheme can be done by the actual user only.

Enquire with Certicom Consulting for more details.